Every day of our lives, without realizing it, we spend in great danger. In everyday routine, we just forget about it. Understanding and assessing risk quite often helps to avoid many problems, especially in business or industrial production. The general definition of this concept says that it is a process aimed at studying and identifying actions, situations or events that could adversely affect your activities when making decisions.
Risk assessment, regardless of focus, includes all aspects. Even those options are calculated, the probability of which is theoretically unlikely. In business, it is generally accepted that a
qualitative analysis consists of identifying the cause of the risk, identifying its sources and the subsequent stages or work that will help reduce it or even reduce it to zero. At an early stage, risk assessment is considered the most important for any entrepreneur or investor, because it can precisely show how dangerous the next project is and what tests await it. Experienced businessmen will
no doubt say that this indicator reflects how successful their project is.
Today, there are many methodologies, tools and approaches for studying this factor, but the basic part remains almost unchanged and consists of the following steps:
- Identification of a possible risk zone.
- Detection and assessment of risk associated with further activities of the company.
- Calculation of negative consequences.
- Reflection of benefits in eliminating risk and its consequences.
A quantitative risk assessment is present in each of these stages. Calculations followed by a numerical display can not only see the percentage probability of the occurrence of any one of the events, but also reveal the whole picture.
After summarizing the analysis, an assessment of the degree of risk is carried out, which is the final stage and allows you to determine the feasibility of the entire project or decision.
We have already talked about the basic part, and now it's time to understand the existing methodologies. Risk assessment is divided into only three main schools:
- Statistical methods.
- Analytical.
- Method of expert assessments.
Each of them has many of its directions, technologies and approaches. It should be noted that each risk assessment using these methods has its own specifics and, accordingly, the final results. Some are aimed at predicting
managerial decision making, others are aimed at identifying the degree of risk when acquiring the company's securities, etc. Only a specific goal or task setting will allow you to choose any one of the methods or to carry out a whole range of activities. In any case, if you want to see objective data and not regret the decision made, then the best option would be to contact the professionals. Today on the market there are many expert firms in this area, offering their services in various price categories.